Introduction
Distribution plays a crucial role in supporting the overall marketing mix strategy of a company. It involves the process of getting products or services from the manufacturer or producer to the end consumer. Effective distribution ensures that the right product is available at the right place and time, which is essential for meeting customer needs and achieving marketing objectives. In this article, we will explore how distribution supports different elements of the marketing mix strategy.
Product
Product availability: Distribution ensures that products are readily available to customers. Through efficient distribution channels, companies can ensure that their products are accessible in the desired locations. This availability enhances the product element of the marketing mix strategy by increasing the chances of customer purchase and satisfaction.
Product assortment: Distribution also supports product assortment by enabling companies to offer a wide range of products to customers. Through various distribution channels, companies can reach different market segments and provide a diverse product portfolio. This allows them to cater to the specific needs and preferences of different customer groups.
Price
Cost-effective distribution: Distribution plays a crucial role in managing the costs associated with delivering products to customers. By optimizing distribution channels and logistics, companies can reduce transportation and storage costs, which ultimately helps in setting competitive prices for their products. Efficient distribution supports the price element of the marketing mix strategy by enabling companies to offer affordable prices without compromising profitability.
Pricing strategies: Distribution also supports pricing strategies. For example, companies can use exclusive distribution channels to create a perception of premium pricing for their products. On the other hand, companies can leverage mass distribution channels to adopt a penetration pricing strategy, targeting a larger customer base with lower prices. Distribution channels provide the flexibility to implement different pricing strategies based on the target market and competitive landscape.
Promotion
Market reach: Distribution channels play a crucial role in reaching the target market and promoting products or services effectively. By utilizing various distribution channels, companies can expand their market reach and ensure that their promotional messages reach the intended audience. Distribution supports the promotion element of the marketing mix strategy by facilitating the efficient delivery of promotional materials to the target market.
Point of sale promotion: Distribution channels provide opportunities for point of sale promotion. Through strategic placement of products and promotional materials at retail locations, companies can influence customer buying decisions. Distribution supports the promotion element by enabling companies to create attractive displays, offer discounts, or provide product demonstrations at the point of sale.
Place
Geographical coverage: Distribution ensures that products are available in the desired geographical locations. By establishing an efficient distribution network, companies can expand their market coverage and reach customers in different regions. This supports the place element of the marketing mix strategy by making the product accessible to customers in their preferred locations.
Channel selection: Distribution also involves selecting the most appropriate distribution channels based on the target market and product characteristics. Companies can choose between direct distribution, where they sell products directly to customers, or indirect distribution, where intermediaries such as wholesalers and retailers are involved. The selection of the right distribution channels supports the place element by ensuring efficient product delivery and customer accessibility.
Conclusion
Distribution plays a vital role in supporting various elements of the marketing mix strategy. It ensures product availability and assortment, supports pricing strategies, facilitates market reach and point of sale promotion, and enables geographical coverage and channel selection. By understanding the importance of distribution in the marketing mix, companies can effectively deliver their products or services to customers, meet their needs, and achieve marketing objectives.
References
– American Marketing Association: www.ama.org
– Kotler, P., & Armstrong, G. (2018). Principles of Marketing. Pearson Education.